EUR/USD Forecast Video for 13.04.23
Euro vs US Dollar Technical Analysis
The Euro tried to rally a bit during the trading session on Wednesday but continues to see a lot of resistance just above. Keep in mind that the 1.10 level is a major barrier, and of course a large, round, psychologically significant figure. Ultimately, it looks as if there is a lot of noise between the 1.09 level and the 1.10 level, so it makes quite a bit of sense that we would see a bit of hesitation. After all, we are in the midst of forming what could be thought of as a potential “double top”, but that remains to be seen. If we were to break above the recent high, then we could go much higher, perhaps trying to get to the 1.1250 level, followed by the 1.14 level.
Underneath, the 1.08 level is significant support, and of course we have the 50-Day EMA racing toward it, which will offer even more support as well. With that in mind, it does make for a potential target, but it’s also worth noting that this pair has been extraordinarily choppy, so I don’t necessarily think that it is going to go racing in one direction or the other. While we do have to worry about inflation numbers, the reality is that the global economic situation is starting to deteriorate, that typically will bring money toward the US dollar given enough time. Yes, a lot of traders are out there celebrating the fact that the Federal Reserve may be getting relatively close to the end of its cycle, but the reality is that eventually we begin to worry about safety, just as we have seen in the gold markets.
In the short term, I would expect a lot of choppy and noisy behavior, but that would be nothing new for this pair. It does tend to be very choppy in general, and I don’t think that’s going to change anytime soon. Because of this, it’s a situation where we should continue to see plenty of volatility, therefore you need to be cautious with your position sizing. Nonetheless, I do think that we are getting a bit stretched so there should be plenty of overhead issues.
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This article was originally posted on FX Empire
